|**ITEM 1. SCHEDULE OF
    INVESTMENTS**                                |                         |          
|---------------------------------------------------------------------- | ----------------------- | ---------
|                                                                       |                         |          
|********T. ROWE PRICE TAX-FREE INCOME
      FUND********               |                         |          
|Unaudited                                                              | November 30,
      2007
|Portfolio of Investments
                                             | $
    Par               | Value    
|(Amounts in
      000s)                                                |                         |          
|                                                                      
|MUNICIPAL SECURITIES 98.4%                                             |                         |          
|Alabama 1.4%                                                           |                         |          
|Alabama Special
      Care Fac. Fin. Auth., Ascension Health           |                         |          
|5.00%,
      11/15/39                                                  | 8,300                   | 8,309    
|Baldwin County
      Eastern Shore Hosp. Auth., 5.75%, 4/1/27          |                         |          
|(Prerefunded
      4/1/08) (1)                                         | 880                     | 904      
|Camden Ind. Dev.
      Board, IDRB, Weyerhaeuser, 6.125%,              |                         |          
|12/1/24                                                                | 2,500                   | 2,602    
|Health Care
      Auth. for Baptist Health, 5.00%, 11/15/14            | 3,400                   | 3,502    
|Health Care
      Auth. for Baptist Health, 5.00%, 11/15/15            | 3,100                   | 3,192    
|Health Care
      Auth. for Baptist Health, 5.00%, 11/15/18            | 1,935                   | 1,962    
|Houston County
      Health Care Auth., 5.25%, 10/1/30 (2)             | 5,500                   | 5,696    
|                                                                       |                         | 26,167   
|Alaska 0.6%                                                            |                         |          
|Alaska HFC,
      Single Family, 4.70%, 12/1/22                        | 10,000                  | 10,090   
|Alaska HFC,
      Single Family, 5.30%, 12/1/17                        | 2,015                   | 2,015    
|                                                                       |                         | 12,105   
|Arizona 0.7%                                                           |                         |          
|Arizona School
      Fac. Board, 5.50%, 7/1/18                         |                         |          
|(Prerefunded
      7/1/11) (1)                                         | 5,000                   | 5,376    
|Maricopa County
      IDA, Catholic Healthcare West, 5.00%, 7/1/18     | 5,000                   | 5,213    
|Scottsdale IDA,
      5.80%, 12/1/31 (Prerefunded 12/1/11) (1)         | 2,000                   | 2,200    
|                                                                       |                         | 12,789   
|Arkansas 0.6%                                                          |                         |          
|Jefferson
      County, Entergy Arkansas, 4.60%, 10/1/17               | 3,620                   | 3,584    
|Little Rock
      Health Fac. Board, Baptist Health, 6.85%, 11/1/08    | 2,495                   | 2,565    
|North Little
      Rock, 6.50%, 7/1/15 (3)                             | 4,000                   | 4,554    
|                                                                       |                         | 10,703   
|California 11.0%                                                       |                         |          
|Anaheim PFA,
      California Electric, 5.00%, 10/1/34 (3)             | 3,340                   | 3,456    
|California,
      5.25%, 4/1/29 (Prerefunded 4/1/14)  (1)              | 4,995                   | 5,524    
|California,
      5.25%, 4/1/34 (Prerefunded 4/1/14)  (1)              | 5,495                   | 6,076    
|California,
      5.65%, 6/1/30 (Prerefunded 6/1/10)  (1)              | 520                     | 550      
|California, GO,
      5.00%, 8/1/26 (4)                                | 10,000                  | 10,204   
|California, GO,
      5.00%, 2/1/33 (Prerefunded 2/1/14) (1)           | 5,000                   | 5,448    
|California, GO,
      5.00%, 6/1/37                                    | 5,000                   | 5,057    
|California, GO,
      5.25%, 4/1/29                                    | 5                       | 5        
|California, GO,
      5.25%, 4/1/34                                    | 5                       | 5        
|California, GO,
      5.50%, 11/1/33                                   | 8,000                   | 8,497    
|California, GO,
      5.65%, 6/1/30                                    | 135                     | 141      
|California Dept.
      of Water Resources, 5.375%, 5/1/21              |                         |          
|(Prerefunded
      5/1/12) (1)                                         | 2,000                   | 2,190    
|California Dept.
      of Water Resources, 5.75%, 5/1/17               |                         |          
|(Prerefunded
      5/1/12) (1)                                         | 3,000                   | 3,331    
|California
      Public Works Board, Dept. of Corrections              |                         |          
|5.25%,
      6/1/28                                                    | 14,810                  | 15,177   
|California
      Public Works Board, Dept. of Health Services          |                         |          
|5.00%,
      11/1/23                                                   | 12,055                  | 12,323   
|California
      Public Works Board, Mental Health, 5.50%, 6/1/23      | 3,000                   | 3,255    
|California
      Statewide CDA, Huntington Memorial Hosp.              |                         |          
|5.00%,
      7/1/27                                                    | 6,500                   | 6,536    
|California
      Statewide CDA, Kaiser Permanente, 5.25%, 3/1/45       | 10,000                  | 10,052   
|California
      Statewide CDA, Southern California Edison             |                         |          
|4.25%, 11/1/33
      (Tender 11/1/16) (5)                              | 3,475                   | 3,568    
|California
      Statewide CDA, Sutter Health, 5.625%, 8/15/42         | 3,850                   | 3,985    
|California
      Tobacco Securitization Agency, Los Angeles County     |                         |          
|Tobacco
      Industry, STEP,0%, 6/1/21                                | 5,000                   | 4,009    
|Capistrano
      Unified School Dist. No. 90-2, 5.875%, 9/1/23         | 1,415                   | 1,451    
|Foothill /
      Eastern Transportation Corridor Agency                |                         |          
|Zero Coupon,
      1/1/15 (6)                                          | 5,000                   | 3,843    
|Foothill /
      Eastern Transportation Corridor Agency                |                         |          
|Zero Coupon,
      1/1/17 (6)                                          | 18,000                  | 12,538   
|Golden State
      Tobacco Securitization Corp., Tobacco Industry      |                         |          
|5.00%,
      6/1/12                                                    | 4,000                   | 4,066    
|Golden State
      Tobacco Securitization Corp., Tobacco Settlement    |                         |          
|5.50%, 6/1/33
      (Prerefunded 6/1/13) (1)                           | 7,500                   | 8,254    
|Golden State
      Tobacco Securitization Corp., Tobacco Settlement    |                         |          
|5.625%, 6/1/38
      (Prerefunded 6/1/13) (1)                          | 8,500                   | 9,407    
|Long Beach Bond
      Fin. Auth., Natural Gas, 5.50%, 11/15/30         | 10,000                  | 10,170   
|Los Angeles
      Harbor, 7.60%, 10/1/18 (6)                           | 2,845                   | 3,476    
|San Diego
      Unified School Dist., 5.50%, 7/1/25 (3)                | 4,745                   | 5,481    
|San Francisco
      Public Utility Commission, 5.00%, 11/1/27 (7)      | 8,000                   | 8,281    
|San Jose,
      Airport, 5.00%, 3/1/28 (3)                             | 3,500                   | 3,604    
|Southern
      California Public Power Auth., 6.75%, 7/1/11            | 4,050                   | 4,487    
|Union Elementary
      School Dist., Zero Coupon, GO, 9/1/12 (5)       | 2,945                   | 2,472    
|Union Elementary
      School Dist., Zero Coupon, GO, 9/1/13 (5)       | 3,520                   | 2,825    
|Univ. of
      California Regents, 5.125%, 5/15/15 (2)                 | 1,900                   | 2,053    
|Univ. of
      California Regents, 5.125%, 5/15/17 (2)                 | 10,000                  | 10,806   
|West Hollywood
      CDA, East Side Redev., 5.625%, 9/1/28             | 2,015                   | 2,050    
|                                                                       |                         | 204,653  
|Colorado 1.7%                                                          |                         |          
|Colorado HFA,
      Covenant Retirement Communities                    |                         |          
|6.125%,
      12/1/33                                                  | 2,000                   | 2,084    
|Colorado HFA,
      PorterCare Adventist Health, 6.50%, 11/15/31       |                         |          
|(Prerefunded
      11/15/11) (1)                                       | 2,500                   | 2,814    
|Colorado State
      Univ. System, 5.00%, 3/1/37 (5)                   | 4,000                   | 4,162    
|Denver
      Convention Center Hotel Auth., 5.25%, 12/1/20 (8)         | 8,670                   | 9,275    
|Denver
      Convention Center Hotel Auth., 5.25%, 12/1/21 (8)         | 5,000                   | 5,326    
|Denver
      Convention Center Hotel Auth., 5.25%, 12/1/22 (8)         | 7,020                   | 7,451    
|                                                                       |                         | 31,112   
|Connecticut 1.0%                                                       |                         |          
|Connecticut
      Special Tax Obligation, 7.125%, 6/1/10               | 7,350                   | 7,806    
|Mashantucket
      Western Pequot Tribe, 6.50%, 9/1/31 (9)             | 3,500                   | 3,687    
|Mohegan Tribe
      Indians, 6.00%, 1/1/16                             | 2,250                   | 2,316    
|Mohegan Tribe
      Indians, 6.25%, 1/1/31                             | 4,750                   | 4,920    
|                                                                       |                         | 18,729   
|District of Columbia 4.5%                                              |                         |          
|District of
      Columbia, 5.25%, 6/1/27 (Prerefunded 6/1/08)  (1)(3) | 2,060                   | 2,100    
|District of
      Columbia, 5.25%, 6/1/27 (Prerefunded 6/1/08)  (1)(3) | 1,330                   | 1,356    
|District of
      Columbia, 6.00%, 6/1/14 (3)(6)                       | 2,305                   | 2,645    
|District of
      Columbia, Ballpark, GO, 5.00%, 2/1/35 (5)            | 5,100                   | 5,168    
|District of
      Columbia, GO, 4.75%, 6/1/36 (5)                      | 15,450                  | 15,567   
|District of
      Columbia, GO, 5.00%, 6/1/17 (2)                      | 7,125                   | 7,670    
|District of
      Columbia, GO, 5.00%, 6/1/18 (2)                      | 11,230                  | 12,016   
|District of
      Columbia, GO, 5.125%, 6/1/17                         |                         |          
|(Prerefunded
      6/1/13) (1)(2)                                      | 12,720                  | 13,827   
|District of
      Columbia, GO, 5.25%, 6/1/27 (3)                      | 6,585                   | 6,691    
|District of
      Columbia, GO, 6.00%, 6/1/14 (3)                      | 4,400                   | 5,019    
|District of
      Columbia, GO, 6.00%, 6/1/15 (3)                      | 1,550                   | 1,790    
|District of
      Columbia, GO, 6.00%, 6/1/17 (3)                      | 4,250                   | 4,977    
|District of
      Columbia Tobacco Securitization Corp., Tobacco       |                         |          
|Settlement,
      5.25%, 5/15/09                                       | 5,000                   | 5,074    
|                                                                       |                         | 83,900   
|Florida 2.0%                                                           |                         |          
|Coral Gables
      HFA, Baptist Health, 5.25%, 8/15/24                 |                         |          
|(Prerefunded
      8/15/14) (1)(7)                                     | 5,000                   | 5,528    
|Highlands County
      HFA, Adventist Health / Sunbelt                 |                         |          
|5.25%,
      11/15/36                                                  | 5,000                   | 5,050    
|Highlands County
      HFA, Adventist Health / Sunbelt                 |                         |          
|5.875%, 11/15/29
      (Prerefunded 11/15/13) (1)                      | 7,000                   | 7,883    
|Highlands County
      HFA, Adventist Health / Sunbelt                 |                         |          
|6.00%, 11/15/31
      (Prerefunded 11/15/11) (1)                       | 2,750                   | 3,037    
|Jacksonville
      Pollution Control, Florida Power & Light, VRDN      |                         |          
|3.58%,
      5/1/29                                                    | 2,000                   | 2,000    
|Orange County
      HFA, Nemours Foundation, 5.00%, 1/1/35             |                         |          
|(Prerefunded
      1/1/15) (1)                                         | 4,910                   | 5,365    
|Orange County
      HFA, Nemours Foundation, 5.00%, 1/1/35             | 1,435                   | 1,482    
|Orange County
      HFA, Westminster Community Care                    |                         |          
|6.75%,
      4/1/34                                                    | 2,500                   | 2,557    
|Orange County
      School Board, VRDN, 3.65%, 8/1/25 (2)              | 400                     | 400      
|Seminole Tribe
      of Florida, 5.50%, 10/1/24 (9)                    | 4,400                   | 4,403    
|                                                                       |                         | 37,705   
|Georgia 4.2%                                                           |                         |          
|Atlanta Airport,
      5.25%, 1/1/33 (7)                               | 5,000                   | 5,209    
|Augusta Water
      & Sewer, 5.25%, 10/1/39 (7)                        | 4,620                   | 4,851    
|Chatham County
      Hosp. Auth., Memorial Health Univ. Medical        |                         |          
|Center, 5.75%,
      1/1/29                                            | 3,500                   | 3,512    
|Chatham County
      Hosp. Auth., Memorial Health Univ. Medical        |                         |          
|Center, 6.125%,
      1/1/24                                           | 4,000                   | 4,124    
|Forsyth County
      School Dist., 5.75%, 2/1/18                       |                         |          
|(Prerefunded
      2/1/10) (1)                                         | 2,800                   | 2,997    
|Fulton-DeKalb
      Hosp. Auth., Grady Memorial Hosp.                  |                         |          
|6.80%, 1/1/08
      (2)(6)                                             | 5,905                   | 5,922    
|Fulton-DeKalb
      Hosp. Auth., Grady Memorial Hosp.                  |                         |          
|6.85%, 1/1/09
      (2)(6)                                             | 6,310                   | 6,549    
|Fulton-DeKalb
      Hosp. Auth., Grady Memorial Hosp.                  |                         |          
|6.85%, 1/1/10
      (2)(6)                                             | 6,745                   | 7,229    
|Georgia, GO,
      5.00%, 7/1/19                                       | 10,000                  | 10,973   
|Georgia Private
      Colleges & Univ. Auth., Emory Univ.              |                         |          
|5.50%, 11/1/24
      (Prerefunded 11/1/10) (1)                         | 6,225                   | 6,656    
|Gwinnett County
      School Dist., GO, 6.40%, 2/1/11                  | 1,905                   | 2,085    
|Municipal
      Electric Auth. of Georgia, 5.50%, 1/1/20               |                         |          
|(Prerefunded
      1/1/13) (1)                                         | 85                      | 94       
|Municipal
      Electric Auth. of Georgia, 5.50%, 1/1/20               | 2,915                   | 3,176    
|Municipal
      Electric Auth. of Georgia, 5.70%, 1/1/19 (5)           | 5,100                   | 5,764    
|Municipal
      Electric Auth. of Georgia, 7.25%, 1/1/24 (2)           | 6,500                   | 8,701    
|                                                                       |                         | 77,842   
|Hawaii 0.2%                                                            |                         |          
|Hawaii Airports
      System, 5.75%, 7/1/21 (5)                        | 4,000                   | 4,218    
|                                                                       |                         | 4,218    
|Idaho 0.1%                                                             |                         |          
|Nez Perce
      County, PCR, IDRB, Potlatch Corp., 7.00%, 12/1/14      | 2,600                   | 2,851    
|                                                                       |                         | 2,851    
|Illinois 5.8%                                                          |                         |          
|Chicago, 6.75%,
      1/1/35 (Prerefunded 7/1/10) (1)(5)               | 5,000                   | 5,477    
|Chicago, GO,
      5.50%, 1/1/14 (7)                                   | 5,000                   | 5,552    
|Chicago, GO,
      5.50%, 1/1/18 (2)                                   | 3,880                   | 4,338    
|Chicago Board of
      Ed., Zero Coupon, GO, 12/1/19 (5)               | 6,200                   | 3,669    
|Illinois, Sales
      Tax, 5.50%, 6/15/16                              | 2,000                   | 2,142    
|Illinois, Sales
      Tax, 6.125%, 6/15/16                             | 2,000                   | 2,134    
|Illinois EFA,
      Northwestern Univ., 5.25%, 11/1/32                 |                         |          
|(Prerefunded
      11/1/14) (1)                                        | 4,000                   | 4,427    
|Illinois Fin.
      Auth., Northwestern Memorial Hosp.                 |                         |          
|5.50%,
      8/15/43                                                   | 12,750                  | 13,333   
|Illinois HFA,
      Chicago Charter School, 5.00%, 12/1/26             | 5,000                   | 4,696    
|Illinois HFA,
      Glen Oaks Medical Center, 7.00%, 11/15/19 (6)      | 3,300                   | 3,303    
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/22             | 5,765                   | 5,819    
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/23             | 3,250                   | 3,267    
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/26             | 2,000                   | 1,986    
|Illinois HFA,
      Institute of Technology, 5.00%, 4/1/36             | 3,000                   | 2,852    
|Illinois HFA,
      Lutheran Hillside Village, 5.25%, 2/1/37           | 4,500                   | 4,420    
|Illinois HFA,
      OSF Healthcare, Muni Auction Rate                  |                         |          
|6.00%, 11/15/31
      (10)                                             | 4,850                   | 4,850    
|Illinois HFA,
      Palos Community Hosp., 5.00%, 5/15/32 (3)          | 11,500                  | 11,725   
|Metropolitan
      Pier & Exposition Auth., McCormick                  |                         |          
|Zero Coupon,
      6/15/18 (5)                                         | 14,160                  | 9,038    
|Metropolitan
      Pier & Exposition Auth., McCormick                  |                         |          
|Zero Coupon,
      6/15/37 (3)                                         | 11,870                  | 2,873    
|Regional
      Transportation Auth., 6.70%, 11/1/21 (5)                | 5,000                   | 6,141    
|Regional
      Transportation Auth., 7.75%, 6/1/19 (5)                 | 5,350                   | 6,894    
|                                                                       |                         | 108,936  
|Indiana 0.7%                                                           |                         |          
|Goshen,
      Greencroft Obligated Group, 5.75%, 8/15/19               | 3,000                   | 3,009    
|Indiana
      Transportation Fin. Auth., Highway, 5.375%, 12/1/25      |                         |          
|(Prerefunded
      12/1/10) (1)                                        | 640                     | 678      
|Indiana
      Transportation Fin. Auth., Highway, 5.375%, 12/1/25      |                         |          
|(Prerefunded
      12/1/10) (1)                                        | 3,360                   | 3,562    
|Rockport, PCR,
      American Electric Power, 4.15%, 7/1/25            |                         |          
|(Tender 7/15/11)
      (2)                                             | 5,000                   | 5,079    
|                                                                       |                         | 12,328   
|Iowa 0.2%                                                              |                         |          
|Scott County,
      Ridgecrest Village, 7.25%, 11/15/26                |                         |          
|(Prerefunded
      11/15/10) (1)                                       | 4,000                   | 4,447    
|                                                                       |                         | 4,447    
|Kansas 1.5%                                                            |                         |          
|Burlington, PCR,
      Kansas Gas & Electric, 5.30%, 6/1/31 (3)        | 21,525                  | 22,435   
|Salina, Regional
      Health Center, 5.00%, 10/1/36                   | 5,000                   | 4,924    
|                                                                       |                         | 27,359   
|Louisiana 2.0%                                                         |                         |          
|Calcasieu
      Parish, IDRB, PCR, Entergy Gulf States                 |                         |          
|5.45%,
      7/1/10                                                    | 1,750                   | 1,752    
|Louisiana
      Offshore Terminal Auth., 4.30%, 10/1/37                |                         |          
|(Tender
      10/1/11)                                                 | 12,500                  | 12,703   
|Louisiana PFA,
      Baton Rouge General Medical Center                |                         |          
|5.25%, 7/1/33
      (3)                                                | 10,000                  | 10,257   
|Sabine River
      Auth., PCR, Intl. Paper, 6.20%, 2/1/25              | 2,500                   | 2,574    
|Saint Charles
      Parish, Shell Oil, VRDN, 3.63%, 10/1/22            | 200                     | 200      
|Saint John
      Baptist Parish, PCR, Marathon Oil, 5.125%, 6/1/37     | 10,000                  | 9,532    
|                                                                       |                         | 37,018   
|Maryland 2.5%                                                          |                         |          
|Baltimore City,
      Convention Center Hotel, 5.875%, 9/1/39          | 1,500                   | 1,515    
|Gaithersburg,
      Asbury Obligated Group, 5.125%, 1/1/26             | 5,000                   | 4,893    
|Gaithersburg,
      Asbury Obligated Group, 5.125%, 1/1/36             | 7,000                   | 6,655    
|Maryland CDA,
      Residential, 3.90%, 9/1/16                         | 3,500                   | 3,515    
|Maryland CDA,
      Residential, 3.95%, 9/1/17                         | 3,725                   | 3,732    
|Maryland
      Economic Dev. Corp., Chesapeake Bay Hyatt               |                         |          
|5.00%,
      12/1/31                                                   | 4,000                   | 3,560    
|Maryland HHEFA,
      Doctors Community Hosp., 5.00%, 7/1/20           | 4,825                   | 4,869    
|Maryland HHEFA,
      Johns Hopkins Hosp., Zero Coupon, 7/1/19         | 7,675                   | 4,425    
|Maryland HHEFA,
      Mercy Medical Center, 5.50%, 7/1/42              | 10,000                  | 9,765    
|Maryland HHEFA,
      Mercy Ridge Retirement Community                 |                         |          
|6.00%, 4/1/35
      (Prerefunded 4/1/13) (1)                           | 2,535                   | 2,865    
|Maryland HHEFA,
      Univ. of Maryland Medical System                 |                         |          
|7.00%, 7/1/22
      (5)                                                | 1,500                   | 1,922    
|                                                                       |                         | 47,716   
|Massachusetts 5.1%                                                     |                         |          
|Massachusetts,
      5.25%, 8/1/16 (Prerefunded 8/1/13)  (1)           | 10,000                  | 10,892   
|Massachusetts,
      5.75%, 1/1/32 (Prerefunded 1/1/14)  (1)(5)        | 6,000                   | 6,737    
|Massachusetts,
      GO, 5.25%, 8/1/28                                 | 15,000                  | 16,718   
|Massachusetts
      Bay Transportation Auth., 5.25%, 7/1/30            |                         |          
|(Prerefunded
      7/1/14) (1)                                         | 2,000                   | 2,212    
|Massachusetts
      Bay Transportation Auth., GO, 7.00%, 3/1/14        | 3,150                   | 3,657    
|Massachusetts
      Bay Transportation Auth., GO, 7.00%, 3/1/21        | 6,200                   | 7,606    
|Massachusetts
      HEFA, 5.75%, 7/1/32 (Prerefunded 7/1/11) (1)       | 4,235                   | 4,622    
|Massachusetts
      HEFA, Harvard Univ., 6.00%, 7/1/35                 |                         |          
|(Prerefunded
      7/1/10) (1)                                         | 3,500                   | 3,768    
|Massachusetts
      HEFA, Harvard Univ., 6.25%, 4/1/20                 | 5,000                   | 6,153    
|Massachusetts
      HEFA, Massachusetts Institute of Technology        |                         |          
|5.50%,
      7/1/32                                                    | 10,000                  | 11,725   
|Massachusetts
      HEFA, Partners Healthcare, 5.00%, 7/1/32           | 5,000                   | 5,034    
|Massachusetts
      HEFA, Partners Healthcare, 5.75%, 7/1/32           | 165                     | 175      
|Massachusetts
      Port Auth., 5.75%, 7/1/29                          |                         |          
|(Prerefunded
      1/1/10) (1)                                         | 5,000                   | 5,296    
|Massachusetts
      Water Pollution Abatement Trust                    |                         |          
|5.75%, 8/1/29
      (Prerefunded 8/1/09) (1)                           | 990                     | 1,039    
|Massachusetts
      Water Pollution Abatement Trust                    |                         |          
|Water Resources
      Auth., 5.75%, 8/1/29                             | 4,010                   | 4,168    
|Massachusetts
      Water Pollution Abatement Trust                    |                         |          
|Water Resources
      Auth., 6.00%, 8/1/19                             | 5,000                   | 5,977    
|                                                                       |                         | 95,779   
|Michigan 1.7%                                                          |                         |          
|Cornell Township
      Economic Dev., MeadWestvaco                     |                         |          
|5.875%, 5/1/18
      (Prerefunded 5/1/12) (1)                          | 2,000                   | 2,204    
|Dickinson County
      Economic Dev. Corp., PCR, Int'l. Paper          |                         |          
|4.80%,
      11/1/18                                                   | 2,000                   | 1,953    
|Michigan Hosp.
      Fin. Auth., Ascension Health, 5.25%, 11/15/26     | 3,570                   | 3,663    
|Michigan Hosp.
      Fin. Auth., Trinity Health, 5.00%, 8/15/25        | 10,000                  | 10,198   
|Michigan Hosp.
      Fin. Auth., Trinity Health, 6.00%, 12/1/20        | 1,500                   | 1,590    
|Michigan State
      Univ. Board of Trustees, VRDN, 3.65%, 8/15/32     | 2,400                   | 2,400    
|Michigan
      Strategic Fund, IDRB, Detroit Edison, 5.45%, 9/1/29     | 5,000                   | 5,102    
|Univ. of
      Michigan Regents, VRDN, 3.65%, 12/1/21                  | 3,995                   | 3,995    
|                                                                       |                         | 31,105   
|Minnesota 0.8%                                                         |                         |          
|Maple Grove,
      North Memorial Health Care, 5.25%, 5/1/37           | 3,630                   | 3,641    
|Minneapolis-St.
      Paul Metropolitan Airport Commission             |                         |          
|5.25%, 1/1/32
      (Prerefunded 1/1/11) (1)(5)                        | 10,000                  | 10,576   
|                                                                       |                         | 14,217   
|Mississippi 1.1%                                                       |                         |          
|Mississippi
      Business Fin. Corp., PCR, System Energy Resources    |                         |          
|5.90%,
      5/1/22                                                    | 7,000                   | 7,066    
|Mississippi Home
      Corp., 4.65%, 12/1/38                           | 2,185                   | 2,105    
|Mississippi Home
      Corp., Single Family, 4.875%, 12/1/28           | 1,370                   | 1,389    
|Mississippi Home
      Corp., Single Family, 4.95%, 12/1/33            | 1,130                   | 1,141    
|Mississippi Home
      Corp., Single Family, 5.00%, 12/1/38            | 2,595                   | 2,622    
|Mississippi
      Hosp. Equipment Fac. Auth., Baptist Health           |                         |          
|5.00%,
      8/15/29                                                   | 6,000                   | 5,860    
|                                                                       |                         | 20,183   
|Missouri 0.7%                                                          |                         |          
|Missouri Joint
      Electric Utility Commission, Plum Point           |                         |          
|5.00%, 1/1/23
      (3)                                                | 8,975                   | 9,394    
|Missouri Joint
      Electric Utility Commission, Plum Point           |                         |          
|5.00%, 1/1/27
      (3)                                                | 4,000                   | 4,145    
|                                                                       |                         | 13,539   
|Montana 0.5%                                                           |                         |          
|Forsyth, PCR,
      IDRB, Northwestern Corp., 4.65%, 8/1/23 (2)        | 9,945                   | 9,907    
|                                                                       |                         | 9,907    
|Nebraska 0.2%                                                          |                         |          
|Omaha Public
      Power Dist., 6.20%, 2/1/17 (6)                      | 3,000                   | 3,477    
|                                                                       |                         | 3,477    
|Nevada 2.3%                                                            |                         |          
|Clark County,
      Fuel Tax, 5.125%, 7/1/16 (2)                       | 10,870                  | 11,736   
|Clark County
      Airport, Las Vegas McCarran Int'l. Airport          |                         |          
|4.75%, 7/1/22
      (3)                                                | 13,795                  | 13,945   
|Clark County
      School Dist., GO, 7.00%, 6/1/11 (3)                 | 3,500                   | 3,918    
|Clark County,
      IDRB, PCR, Nevada Power, 5.30%, 10/1/11            | 2,000                   | 1,966    
|Clark County,
      IDRB, PCR, Southwest Gas, 5.45%, 3/1/38            |                         |          
|(Tender
      3/1/13)                                                  | 5,000                   | 5,193    
|Nevada, GO,
      7.25%, 11/1/10 (6)                                   | 3,050                   | 3,103    
|Truckee Meadows
      Water Auth., 5.50%, 7/1/19                       |                         |          
|(Prerefunded
      7/1/11) (1)(7)                                      | 2,500                   | 2,687    
|                                                                       |                         | 42,548   
|New
      Hampshire 1.9%                                               |                         |          
|New Hampshire
      Business Fin. Auth., PCR, Public Service           |                         |          
|5.45%, 5/1/21
      (3)                                                | 14,500                  | 15,520   
|New Hampshire
      HEFA, Covenant Health, 5.00%, 7/1/31               | 1,000                   | 988      
|New Hampshire
      HEFA, Covenant Health, 6.00%, 7/1/22               |                         |          
|(Prerefunded
      1/1/12) (1)                                         | 3,400                   | 3,772    
|New Hampshire
      HEFA, Dartmouth-Hitchcock Obligation Group         |                         |          
|5.50%, 8/1/27
      (7)                                                | 7,930                   | 8,411    
|New Hampshire
      HEFA, Wentworth-Douglass Hosp.                     |                         |          
|5.375%, 1/1/15
      (3)                                               | 5,600                   | 5,989    
|                                                                       |                         | 34,680   
|New
      Jersey 2.3%                                                  |                         |          
|Middlesex
      County, PCR, Amerada Hess, 6.05%, 9/15/34              | 2,000                   | 2,052    
|New Jersey
      Economic Dev. Auth., Harrogate, 5.875%, 12/1/26       | 3,500                   | 3,506    
|New Jersey
      Economic Dev. Auth., Motor Vehicle Surcharge          |                         |          
|5.25%, 7/1/31
      (3)                                                | 5,000                   | 5,273    
|New Jersey
      Economic Dev. Auth., School Fac. Construction         |                         |          
|5.25%,
      9/1/18                                                    | 5,000                   | 5,424    
|New Jersey
      Economic Dev. Auth., Seabrook Village                 |                         |          
|5.25%,
      11/15/26                                                  | 2,000                   | 1,857    
|New Jersey HFFA,
      Pascack Valley Hosp. Assoc., 6.50%, 7/1/23      | 3,000                   | 1,632    
|New Jersey HFFA,
      Pascack Valley Hosp. Assoc., 6.625%, 7/1/36     | 3,000                   | 1,632    
|New Jersey
      Transportation Trust Fund Auth.                       |                         |          
|4.25%, 12/15/22
      (7)                                              | 4,500                   | 4,456    
|New Jersey
      Transportation Trust Fund Auth., 5.50%, 12/15/21      | 7,165                   | 8,137    
|Tobacco
      Settlement Fin. Corp., Tobacco Industry                  |                         |          
|4.50%,
      6/1/23                                                    | 9,570                   | 8,767    
|                                                                       |                         | 42,736   
|New
      Mexico 0.9%                                                  |                         |          
|Jicarilla Apache
      Nation, 5.50%, 9/1/23                           | 3,890                   | 4,133    
|Sandoval County,
      IDRB, Intel Corp., 5.00%, 6/1/20                | 3,725                   | 3,913    
|Univ. of New
      Mexico Regents, Univ. of New Mexico Hosp.           |                         |          
|5.00%, 7/1/32
      (7)                                                | 7,840                   | 8,093    
|                                                                       |                         | 16,139   
|New
      York 12.3%                                                   |                         |          
|Dormitory Auth.
      of the State of New York, City Univ.             |                         |          
|5.75%,
      7/1/13                                                    | 10,000                  | 10,806   
|Dormitory Auth.
      of the State of New York, City Univ.             |                         |          
|5.75%, 7/1/18
      (2)                                                | 5,000                   | 5,621    
|Dormitory Auth.
      of the State of New York, City Univ.             |                         |          
|6.00%,
      7/1/14                                                    | 10,000                  | 10,901   
|Dormitory Auth.
      of the State of New York, Mount Sinai Hosp.      |                         |          
|5.50%,
      7/1/26                                                    | 2,000                   | 2,008    
|Dormitory Auth.
      of the State of New York, Personal Income Tax    |                         |          
|5.00%,
      3/15/30                                                   | 7,000                   | 7,290    
|Dormitory Auth.
      of the State of New York, State Univ.            |                         |          
|5.25%, 5/15/15
      (2)                                               | 3,600                   | 3,917    
|Dormitory Auth.
      of the State of New York, State Univ.            |                         |          
|5.25%,
      5/15/19                                                   | 3,325                   | 3,628    
|Dormitory Auth.
      of the State of New York, State Univ. Ed. Fac.   |                         |          
|5.75%, 5/15/19
      (Prerefunded 5/15/10) (1)(5)                      | 4,945                   | 5,289    
|Metropolitan
      Transportation Auth., 5.00%, 11/15/30               | 6,500                   | 6,720    
|Metropolitan
      Transportation Auth., 5.125%, 11/15/31              | 5,000                   | 5,137    
|Metropolitan
      Transportation Auth., 5.25%, 11/15/31               | 2,945                   | 3,085    
|Metropolitan
      Transportation Auth., 5.25%, 11/15/32               |                         |          
|(Prerefunded
      11/15/13) (1)                                       | 10,000                  | 11,047   
|Metropolitan
      Transportation Auth., Commuter Fac.                 |                         |          
|5.75%, 7/1/21
      (Prerefunded 1/1/08) (1)(3)                        | 12,750                  | 12,967   
|New York City,
      5.50%, 6/1/21 (Prerefunded 6/1/13) (1)            | 6,775                   | 7,520    
|New York City,
      GO, 5.25%, 8/1/13                                 | 5,000                   | 5,411    
|New York City,
      GO, 5.25%, 5/15/22                                | 10,000                  | 10,525   
|New York City,
      GO, 5.25%, 8/15/26                                | 5,000                   | 5,221    
|New York City,
      GO, 5.50%, 6/1/21                                 | 725                     | 772      
|New York City,
      GO, 6.00%, 5/15/30 (Prerefunded 5/15/10) (1)      | 2,855                   | 3,070    
|New York City
      IDA, 7 World Trade Center, 6.25%, 3/1/15           | 4,800                   | 4,984    
|New York City
      IDA, 7 World Trade Center, 6.75%, 3/1/15           | 1,000                   | 1,047    
|New York City
      Municipal Water Fin. Auth., 5.50%, 6/15/33         |                         |          
|(Prerefunded
      6/15/10) (1)                                        | 9,000                   | 9,589    
|New York City
      Municipal Water Fin. Auth., 6.00%, 6/15/33         |                         |          
|(Prerefunded
      6/15/10) (1)                                        | 2,220                   | 2,392    
|New York City
      Transitional Fin. Auth., 5.75%, 11/15/20           |                         |          
|(Prerefunded
      5/15/10) (1)                                        | 510                     | 546      
|New York City
      Transitional Fin. Auth., 5.75%, 11/15/20           |                         |          
|(Prerefunded
      5/15/10) (1)                                        | 4,990                   | 5,338    
|New York City
      Transitional Fin. Auth., 6.00%, 8/15/17            |                         |          
|(Prerefunded
      8/15/09) (1)                                        | 4,000                   | 4,220    
|New York City
      Transitional Fin. Auth., STEP, 5.25%, 2/1/29       | 16,640                  | 17,500   
|New York Liberty
      Dev. Corp., 5.25%, 10/1/35                      | 10,000                  | 10,607   
|New York State
      Thruway Auth., 5.50%, 3/15/20                     |                         |          
|(Prerefunded
      3/15/12) (1)                                        | 3,000                   | 3,269    
|New York State
      Urban Dev. Corp., 5.50%, 7/1/26                   |                         |          
|(Prerefunded
      7/1/08) (1)                                         | 5,950                   | 6,025    
|New York State
      Urban Dev. Corp., 5.50%, 7/1/26                   |                         |          
|(Prerefunded
      7/1/08) (1)                                         | 4,050                   | 4,101    
|Seneca Nation
      Indians Capital Improvement Auth.                  |                         |          
|5.00%, 12/1/23
      (9)                                               | 3,000                   | 2,776    
|Tobacco
      Settlement Fin. Corp., 5.25%, 6/1/20 (2)                 | 5,000                   | 5,329    
|Triborough
      Bridge & Tunnel Auth., General Purpose                |                         |          
|5.25%, 1/1/28
      (Prerefunded 1/1/22) (1)                           | 10,000                  | 11,359   
|Triborough
      Bridge & Tunnel Auth., General Purpose                |                         |          
|5.50%, 1/1/17
      (6)                                                | 18,275                  | 20,481   
|                                                                       |                         | 230,498  
|North Carolina 2.6%                                                    |                         |          
|Charlotte-Mecklenberg Hosp. Auth., Carolinas
      HealthCare          |                         |          
|VRDN, 3.51%,
      1/15/26                                             | 600                     | 600      
|Charlotte-Mecklenberg Hosp. Auth., Carolinas
      HealthCare          |                         |          
|VRDN, 3.60%,
      1/15/26                                             | 600                     | 600      
|North Carolina
      Eastern Municipal Power Agency                    |                         |          
|5.00%1/1/20
      (2)                                                  | 10,000                  | 10,607   
|North Carolina
      Eastern Municipal Power Agency, 5.30%, 1/1/15     | 1,000                   | 1,050    
|North Carolina
      Eastern Municipal Power Agency                    |                         |          
|5.375%,
      1/1/11                                                   | 5,000                   | 5,212    
|North Carolina
      Eastern Municipal Power Agency                    |                         |          
|5.375%,
      1/1/16                                                   | 2,000                   | 2,102    
|North Carolina
      Eastern Municipal Power Agency, 5.50%, 1/1/12     | 2,060                   | 2,177    
|North Carolina
      Eastern Municipal Power Agency, 6.70%, 1/1/19     | 3,965                   | 4,185    
|North Carolina
      Eastern Municipal Power Agency                    |                         |          
|7.50%, 1/1/10
      (6)                                                | 4,650                   | 4,998    
|North Carolina
      Eastern Municipal Power Agency, 7.50%, 1/1/10     | 4,330                   | 4,611    
|North Carolina
      Medical Care Commission, First Mortgage           |                         |          
|Southminster,
      5.75%, 10/1/37                                     | 2,000                   | 1,955    
|North Carolina
      Municipal Power Agency #1, Catawba Electric       |                         |          
|5.50%,
      1/1/13                                                    | 5,335                   | 5,687    
|North Carolina
      Municipal Power Agency #1, Catawba Electric       |                         |          
|6.50%,
      1/1/20                                                    | 4,500                   | 4,761    
|                                                                       |                         | 48,545   
|Ohio 2.0%                                                              |                         |          
|Buckeye Tobacco
      Settlement Fin. Auth., Tobacco Industry          |                         |          
|5.125%,
      6/1/24                                                   | 6,000                   | 5,665    
|Cuyahoga County
      Hosp., Cleveland Clinic Health                   |                         |          
|6.00%,
      1/1/32                                                    | 7,600                   | 8,267    
|Hamilton,
      Electric, 4.70%, 10/1/25 (7)                           | 6,605                   | 6,730    
|Montgomery
      County Hosp., Catholic Health Initiatives             |                         |          
|6.00%, 12/1/19
      (6)                                               | 3,310                   | 3,535    
|Montgomery
      County Hosp., Catholic Health Initiatives             |                         |          
|6.00%,
      12/1/19                                                   | 3,190                   | 3,363    
|Ohio State
      Univ., 5.25%, 6/1/17                                  | 5,000                   | 5,401    
|Ohio Water Dev.
      Auth., PCR, FirstEnergy, 3.75%, 10/1/30          |                         |          
|(Tender
      10/1/08)                                                 | 5,000                   | 5,002    
|                                                                       |                         | 37,963   
|Oklahoma 0.6%                                                          |                         |          
|Jackson County
      Memorial Hosp. Auth., 7.30%, 8/1/15               | 1,595                   | 1,603    
|Oklahoma Dev.
      Fin. Auth., Inverness Village, 8.00%, 2/1/32       | 4,000                   | 4,756    
|Tulsa County
      Home Fin. Auth., Single Family                      |                         |          
|6.90%, 8/1/10
      (5)(6)                                             | 4,250                   | 4,635    
|                                                                       |                         | 10,994   
|Oregon 0.2%                                                            |                         |          
|Oregon Housing
      & Community Services Dept., Single Family         |                         |          
|6.00%,
      7/1/20                                                    | 1,830                   | 1,883    
|Umatilla County
      Hosp. Fac. Auth., Catholic Health Initiatives    |                         |          
|5.50%, 3/1/22
      (6)                                                | 1,255                   | 1,340    
|Umatilla County
      Hosp. Fac. Auth., Catholic Health Initiatives    |                         |          
|5.50%,
      3/1/22                                                    | 955                     | 1,000    
|                                                                       |                         | 4,223    
|Pennsylvania 2.1%                                                      |                         |          
|Allegheny County
      Hosp. Dev. Auth., West Penn Allegheny           |                         |          
|Health, 9.25%,
      11/15/22 (Prerefunded 11/15/10) (1)               | 3,000                   | 3,547    
|Chester County
      HEFA, Jefferson Health, 5.375%, 5/15/27           | 6,500                   | 6,594    
|Cumberland
      County Municipal Auth., Wesley Affiliated Services    |                         |          
|7.125%, 1/1/25
      (Prerefunded 1/1/13) (1)                          | 3,000                   | 3,487    
|Monroe County
      Hosp. Auth., Pocono Medical Center                 |                         |          
|Muni Auction
      Rate, 4.85%, 1/1/32 (10)                            | 3,350                   | 3,350    
|Montgomery
      County IDA, ACTS Retirement Communities               |                         |          
|5.00%,
      11/15/11                                                  | 1,640                   | 1,686    
|Montgomery
      County IDA, ACTS Retirement Communities               |                         |          
|5.00%,
      11/15/14                                                  | 5,455                   | 5,623    
|Pennsylvania
      Turnpike Commission, 5.25%, 12/1/32 (2)             | 7,500                   | 7,887    
|Pennsylvania
      Turnpike Commission, 5.50%, 7/15/33                 |                         |          
|(Prerefunded
      7/15/11) (1)(2)                                     | 3,500                   | 3,796    
|West Shore Area
      Auth., Holy Spirit Hosp., 6.20%, 1/1/26          | 3,250                   | 3,373    
|                                                                       |                         | 39,343   
|Puerto Rico 1.3%                                                       |                         |          
|Puerto Rico
      Electric Power Auth., VR, 4.025%, 7/1/29 (7)         | 2,800                   | 2,563    
|Puerto Rico
      Public Fin. Corp., 5.75%, 8/1/27 (Tender 2/1/12)     | 20,000                  | 20,932   
|                                                                       |                         | 23,495   
|South Carolina 2.2%                                                    |                         |          
|Connector 2000
      Assoc., Zero Coupon, 1/1/09                       | 2,700                   | 2,242    
|Connector 2000
      Assoc., Zero Coupon, 1/1/10                       | 3,400                   | 2,859    
|Connector 2000
      Assoc., Zero Coupon, 1/1/11                       | 2,200                   | 1,056    
|Connector 2000
      Assoc., Zero Coupon, 1/1/29                       | 20,500                  | 4,100    
|Georgetown
      County, PCR, Int'l. Paper, 5.70%, 4/1/14              | 9,090                   | 9,591    
|Medical Univ.
      Hosp. Auth., 5.00%, 8/15/31 (3)                    | 12,330                  | 12,540   
|Piedmont
      Municipal Power Agency, 6.50%, 1/1/14 (5)(6)            | 500                     | 583      
|Piedmont
      Municipal Power Agency, 6.50%, 1/1/14 (5)               | 3,000                   | 3,465    
|South Carolina
      Jobs Economic Dev. Auth., Bon Secours Health      |                         |          
|5.625%,
      11/15/30                                                 | 4,000                   | 4,110    
|                                                                       |                         | 40,546   
|South Dakota 0.3%                                                      |                         |          
|South Dakota
      HEFA, Sioux Valley Hosp., Sanford Health            |                         |          
|5.25%,
      11/1/27                                                   | 2,000                   | 2,054    
|South Dakota
      HEFA, Sioux Valley Hosp., Sanford Health            |                         |          
|5.50%,
      11/1/31                                                   | 3,000                   | 3,120    
|                                                                       |                         | 5,174    
|Tennessee 2.3%                                                         |                         |          
|Chattanooga
      Health, Ed. & Housing Fac. Board, Chattanooga        |                         |          
|Memorial Hosp.,
      6.625%, 9/1/08 (3)(6)                            | 3,150                   | 3,226    
|Metropolitan
      Nashville & Davidson Counties, Water & Sewer        |                         |          
|STEP, 7.70%,
      1/1/12 (5)                                          | 6,250                   | 6,886    
|Shelby County
      Health, Ed. & Housing Board, Bonheur               |                         |          
|5.50%, 8/15/12
      (3)(6)                                            | 4,000                   | 4,199    
|Shelby County
      Health, Ed. & Housing Board, Saint Judes           |                         |          
|5.00%,
      7/1/36                                                    | 5,500                   | 5,519    
|Tennessee Energy
      Acquisition Corp., 5.25%, 9/1/18                | 15,000                  | 15,612   
|Tennessee Energy
      Acquisition Corp., 5.25%, 9/1/26                | 8,000                   | 8,076    
|                                                                       |                         | 43,518   
|Texas 6.7%                                                             |                         |          
|Abilene Health
      Fac. Dev. Corp., Sears Methodist Retirement       |                         |          
|7.00%,
      11/15/33                                                  | 3,500                   | 3,747    
|Austin, Water
      & Wastewater, 5.125%, 5/15/27 (7)                  | 10,955                  | 11,226   
|Brazos River
      Auth., PCR, Centerpoint Energy, 7.75%, 12/1/18      | 4,000                   | 4,123    
|Cypress-Fairbanks Independent School
      District                    |                         |          
|Zero Coupon,
      2/15/19                                             | 6,140                   | 3,711    
|Harris County,
      Toll Roads, GO, 5.25%, 8/15/30 (7)                | 5,000                   | 5,598    
|Harris County
      Health Fac. Dev. Corp., Memorial Hermann           |                         |          
|Healthcare,
      6.375%, 6/1/29 (Prerefunded 6/1/11) (1)              | 4,000                   | 4,432    
|Harris County
      Health Fac. Dev. Corp., Saint Lukes Episcopal      |                         |          
|Hosp., 5.375%,
      2/15/26 (Prerefunded 8/15/11) (1)                 | 5,500                   | 5,897    
|Harris County
      Health Fac. Dev. Corp., Texas Childrens Hosp.      |                         |          
|5.25%, 10/1/19
      (6)                                               | 5,000                   | 5,206    
|Harris County
      Hosp. Dist., 7.40%, 2/15/10 (2)(6)                 | 150                     | 155      
|Houston, GO,
      5.50%, 3/1/18 (7)                                   | 2,750                   | 2,902    
|Houston, Water
      & Sewer, 5.75%, 12/1/18                           |                         |          
|(Prerefunded
      12/1/12) (1)(2)                                     | 3,000                   | 3,338    
|Houston Higher
      Ed. Fin. Corp., Rice Univ., 5.375%, 11/15/29      |                         |          
|(Prerefunded
      11/15/09) (1)                                       | 11,450                  | 12,002   
|Houston
      Independent School Dist., 5.00%, 7/15/20                 |                         |          
|(Prerefunded
      7/15/11) (1)(7)                                     | 3,000                   | 3,174    
|Lower Colorado
      River Auth., 6.00%, 5/15/12 (7)                   | 6,095                   | 6,375    
|North Texas
      Tollway Auth., BAN, 4.125%, 11/19/08                 | 10,000                  | 10,000   
|Tarrant County
      Cultural Ed. Fin. Corp., Texas Health Resources   |                         |          
|5.00%,
      2/15/24                                                   | 12,615                  | 12,885   
|Tarrant County
      Health Fac. Dev. Corp., Baylor Health Care        |                         |          
|5.375%,
      11/15/21                                                 | 4,000                   | 4,195    
|Texas,
      Transportation Commission Mobility Fund, GO               |                         |          
|5.00%,
      4/1/28                                                    | 3,000                   | 3,123    
|Texas Municipal
      Gas Acquisition & Supply, 5.25%, 12/15/25        | 11,500                  | 11,238   
|Texas
      Transportation Commission, 5.00%, 4/1/19                   | 10,000                  | 10,845   
|Texas Water Dev.
      Board, VRDN, 3.65%, 7/15/19                     | 1,747                   | 1,747    
|                                                                       |                         | 125,919  
|Virginia 2.0%                                                          |                         |          
|Fairfax County,
      COP, 6.10%, 4/15/32                              | 10,000                  | 10,969   
|Fairfax County
      Economic Dev. Auth., Goodwin House                |                         |          
|5.125%,
      10/1/37                                                  | 3,500                   | 3,274    
|Greater Richmond
      Convention Center, 6.125%, 6/15/29              |                         |          
|(Prerefunded
      6/15/10) (1)                                        | 8,550                   | 9,219    
|Harrisonburg
      IDA, Rockingham Memorial Hospital                   |                         |          
|4.50%, 8/15/39
      (2)                                               | 800                     | 774      
|James City
      County Economic Dev. Auth., Windsormeade              |                         |          
|5.50%,
      7/1/37                                                    | 4,000                   | 3,725    
|James City
      County IDA, Williamsburg Landing, 6.125%, 3/1/32      | 2,000                   | 2,040    
|Loudoun County
      IDA, Falcons Landing, 6.00%, 8/1/24               | 2,500                   | 2,569    
|Virginia
      Transportation Board, 5.25%, 5/15/20                    |                         |          
|(Prerefunded
      5/15/11) (1)                                        | 4,620                   | 4,925    
|                                                                       |                         | 37,495   
|Washington 3.6%                                                        |                         |          
|Chelan County
      Public Utility Dist. #1, Rock Island Hydro         |                         |          
|Zero Coupon,
      6/1/18 (3)                                          | 10,100                  | 6,388    
|Energy
      Northwest, 5.00%, 7/1/24                                  | 5,000                   | 5,256    
|King County
      Public Hosp. Dist. #1, Valley Medical Center         |                         |          
|5.75%, 9/1/20
      (2)                                                | 10,950                  | 12,510   
|Port of Seattle,
      5.50%, 2/1/26 (Prerefunded 8/1/10) (1)(3)       | 6,000                   | 6,341    
|Snohomish County
      Housing Auth., Millwood Estates                 |                         |          
|5.50%,
      6/1/29                                                    | 3,750                   | 3,769    
|Tacoma Solid
      Waste Utility, 5.50%, 12/1/17 (2)                   | 10,220                  | 10,338   
|Washington, GO,
      5.70%, 10/1/15                                   | 14,000                  | 15,540   
|Washington,
      Motor Vehicle Fuel Tax, 6.625%, 1/1/25               |                         |          
|(Prerefunded
      1/1/10) (1)                                         | 6,100                   | 6,512    
|                                                                       |                         | 66,654   
|West Virginia 1.3%                                                     |                         |          
|Mason County,
      PCR, Appalachian Power, 5.50%, 10/1/22             | 7,000                   | 7,043    
|Pleasants
      County, Allegheny Energy, 5.25%, 10/15/37              | 8,000                   | 7,988    
|West Virginia Building Commission, Court Fees,
      GO                |                         |          
|5.375%, 7/1/18 (2)                                                     | 2,915                   | 3,247    
|West Virginia Hosp. Fin. Auth., Oak Hill Hosp.,
      6.75%, 9/1/22    |                         |          
|(Prerefunded 9/1/10) (1)                                               | 5,000                   | 5,497    
|                                                                       |                         | 23,775   
|Wisconsin
      0.7%                                                   |                         |          
|Wisconsin HEFA, Froedert & Community
      Health                      |                         |          
|5.625%, 10/1/14 (Prerefunded 10/1/11)
      (1)                        | 910                     | 994      
|Wisconsin HEFA, Froedert & Community
      Health                      |                         |          
|5.625%, 10/1/15 (Prerefunded 10/1/11)
      (1)                        | 1,005                   | 1,098    
|Wisconsin HEFA, Froedert & Community
      Health                      |                         |          
|5.625%, 10/1/17 (Prerefunded 10/1/11)
      (1)                        | 3,395                   | 3,708    
|Wisconsin HEFA, United Health Group /
      Thedacare                  |                         |          
|5.50%, 12/15/16 (3)                                                    | 6,540                   | 6,680    
|                                                                       |                         | 12,480   
|                                                                      
|Total Municipal Securities (Cost
      $1,756,979)                     |                         | 1,835,510
|                                                                      
|COMMON STOCKS
      0.0%                                               |                         |          
|Airlines
      0.0%                                                    |                         |          
|UAL (11)                                                               |                        | 5        
|Total Common Stocks (Cost $)                                          |                         | 5        
|                                                                      
|Total Investments
      in Securities                                  |                         |          
|98.4% of Net Assets
      (Cost $1,756,979)                            | $                       | 1,835,515

|     | Denominated in U.S. dollars unless otherwise noted.                                      
|----- | -----------------------------------------------------------------------------------------
|(1)   | Prerefunded date is used in determining portfolio maturity.                              
|(2)   | Insured by AMBAC Assurance Corp.                                                         
|(3)   | Insured by MBIA Insurance Corp.                                                          
|(4)   | All or a portion of this security is pledged to cover margin requirements on futures     
|      | contracts at November 30, 2007.                                                          
|(5)   | Insured by Financial Guaranty Insurance Company                                          
|(6)   | Escrowed to maturity                                                                     
|(7)   | Insured by Financial Security Assurance Inc.                                             
|(8)   | Insured by XL Capital Assurance Inc.                                                     
|(9)   | Security was purchased pursuant to Rule 144A under the Securities Act of 1933            
|      | and may be resold in transactions exempt from registration only to qualified             
|      | institutional buyers -- total value of such securities at period end amounts to          
|      | $10,866 and represents 0.6% of net assets.                                               
|(10)  | Insured by Radian Asset Assurance Inc.                                                   
|(11)  | Non-income producing                                                                     
|BAN   | Bond Anticipation Note                                                                   
|CDA   | Community Development Administration/Authority                                           
|COP   | Certificate of Participation                                                             
|EFA   | Educational Facility Authority                                                           
|GO    | General Obligation                                                                       
|HEFA  | Health & Educational Facility Authority                                                  
|HFA   | Health Facility Authority                                                                
|HFC   | Housing Finance Corp.                                                                    
|HFFA  | Health Facility Financing Authority                                                      
|HHEFA | Health & Higher Educational Facility Authority                                           
|IDA   | Industrial Development Authority/Agency                                                  
|IDRB  | Industrial Development Revenue Bond                                                      
|PCR   | Pollution Control Revenue                                                                
|PFA   | Public Finance Authority/Agency                                                          
|STEP  | Stepped coupon bond for which the coupon rate of interest will adjust on specified       
|      | future date(s)                                                                           
|VR    | Variable Rate; rate shown is effective rate at period-end.                               
|VRDN  | Variable Rate Demand Note under which the holder has the right to sell the               
|      | security to the issuer or the issuer 's agent at a predetermined price (generally par)   
|      | on specified dates (generally daily or weekly) upon required notification; such          
|      | specified dates are considered the effective maturity for purposes of the fund's weighted

| | average maturity; rate shown is effective rate at period-end and maturity date shown is final maturity.
| | -------------------------------------------------------------------------------------------------------

|Open Futures Contracts at November 30, 2007 were as
      follows:
|------------------------------------------------------------------
|($
      000s)                                                    

|                                             |            | Contract      | Unrealized 
|-------------------------------------------- | ---------- | ------------- | -----------
|                                             | Expiration | Value         | Gain (Loss)
|Short, 100 U.S. Treasury five
      year     |            |               |            
|contracts, $80 par of 5.00%
      California |            |               |            
|pledged as initial margin                    | 3/08       | $    (11,011) | $      4   
|Net payments (receipts) of
      variation   |            |               |            
|margin to date                               |            |               | (9)        
|Variation margin receivable
      (payable)  |            |               |            
|on open futures contracts                    |            |               | $    (5)   

The accompanying notes are an
integral part of this Portfolio of Investments

|****T. Rowe
      Price Tax-Free Income Fund**** |                  
|------------------------------------------------ | -----------------
|Unaudited                                        | November 30, 2007
|****Notes To
      Portfolio of Investments****  |                  

NOTE 1 - SIGNIFICANT ACCOUNTING
POLICIES

T. Rowe Price Tax-Free Income Fund, Inc.
(the fund), is registered under the Investment Company Act of 1940 (the 1940
Act) as a diversified , open-end management investment company. The fund seeks
to provide a high level of income exempt from federal income taxes by investing
primarily in long-term investment-grade municipal securities.

The accompanying portfolio of investments
was prepared in accordance with accounting principles generally accepted in the
United States of America, which require the use of estimates made by fund
management. Fund management believes that estimates and security valuations are
appropriate; however, actual results may differ from those estimates, and the
security valuations reflected in the portfolio of investments may differ from
the value the fund receives upon sale of the securities.

Valuation

The fund values its investments and
computes its net asset value per share at the close of the New York Stock
Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for
business. Debt securities are generally traded in the over-the-counter (OTC)
market. Securities with original maturities of one year or more are valued at
prices furnished by dealers who make markets in such securities or by an
independent pricing service, which considers yield or price of bonds of
comparable quality, coupon, maturity, and type, as well as prices quoted by
dealers who make markets in such securities. Securities with original maturities
of less than one year are valued at amortized cost in local currency, which
approximates fair value when combined with accrued interest.

Equity securities listed or regularly
traded on a securities exchange or in the OTC market are valued at the last
quoted sale price or, for certain markets, the official closing price at the
time the valuations are made, except for OTC Bulletin Board securities, which
are valued at the mean of the latest bid and asked prices. A security that is
listed or traded on more than one exchange is valued at the quotation on the
exchange determined to be the primary market for such security. Listed
securities not traded on a particular day are valued at the mean of the latest
bid and asked prices for domestic securities and the last quoted sale price for
international securities.

Financial futures contracts are valued at
closing settlement prices.

Other investments, including restricted
securities, and those for which the above valuation procedures are inappropriate
or are deemed not to reflect fair value are stated at fair value as determined
in good faith by the T. Rowe Price Valuation Committee, established by the
funds Board of Directors.

Investment Transactions

Investment transactions are accounted for
on the trade date.

New Accounting
Pronouncement

In September 2006, the Financial
Accounting Standards Board (FASB) released the Statement of Financial
Accounting Standard No. 157 (FAS 157), Fair
Value Measurements. FAS 157 clarifies the
definition of fair value and establishes the framework for measuring fair value,
as well as proper disclosure of this methodology in the financial statements. It
will be effective for the funds fiscal year beginning March 1, 2008. Management
is evaluating the effects of FAS 157; however, it is not expected to have a
material impact on the funds net assets or results of operations.

NOTE 2 - INVESTMENT
TRANSACTIONS

Consistent with its investment objective, the fund engages in the following practices to manage exposure to certain risks or to enhance performance. The investment objective, policies, program, and risk factors of the fund are described more fully in the fund's prospectus and Statement of Additional Information.

Restricted Securities

The fund may invest in securities that are subject to legal or contractual restrictions on resale. Although certain of these securities may be readily sold, for example, under Rule 144A, others may be illiquid, their sale
may involve substantial delays and additional costs, and prompt sale at an acceptable price may be difficult.

Futures Contracts

The fund may invest in futures contracts, which provide for the future sale by one party and purchase by another of a specified amount of a specific financial instrument at an agreed upon price, date, time, and place. Risks
arise from possible illiquidity of the futures market and from movements in security values and/or interest rates.

NOTE 3 - FEDERAL INCOME TAXES

At November 30, 2007, the cost of investments for federal income tax purposes was $1,754,749,000. Net unrealized gain aggregated $80,771,000 at period-end, of which $92,562,000 related to appreciated investments
and $11,791,000 related to depreciated investments.

Item 2. Controls and
Procedures.

(a) The registrants principal executive
officer and principal financial officer have evaluated the registrants
disclosure controls and procedures within 90 days of this filing and have
concluded that the registrants disclosure controls and procedures were
effective, as of that date, in ensuring that information required to be
disclosed by the registrant in this Form N-Q was recorded, processed,
summarized, and reported timely.

(b) The registrants principal executive
officer and principal financial officer are aware of no change in the
registrants internal control over financial reporting that occurred during the
registrants most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrants internal control over
financial reporting.

Item 3. Exhibits.

Separate certifications by the
registrant's principal executive officer and principal financial officer,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule
30a-2(a) under the Investment Company Act of 1940, are
attached.

SIGNATURES

Pursuant to
the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

T. Rowe Price Tax-Free Income Fund,
Inc.

|By   | /s/ Edward C. Bernard      
|---- | ---------------------------
|     | Edward C. Bernard          
|     | Principal Executive Officer
|    
|Date | January 24, 2008           

Pursuant to
the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates
indicated.

|By   | /s/ Edward C. Bernard      
|---- | ---------------------------
|     | Edward C. Bernard          
|     | Principal Executive Officer
|    
|Date | January 24, 2008           

|By   | /s/ Joseph A. Carrier      
|---- | ---------------------------
|     | Joseph A. Carrier          
|     | Principal Financial Officer
|    
|Date | January 24,
2008